ADB Carbon Fund Exceeds $80 Million Threshold for Launch
KYOTO, JAPAN - ADB launched a fund today to provide capital to buy carbon credits at the outset of clean energy projects. Commitments from participants to the Asia Pacific Carbon Fund, part of ADB's broader Carbon Market Initiative, have now exceeded the US$80 million needed for launch. Participants who so far have agreed to put in a total of $85 million into the fund include Luxembourg, Spain, Sweden, and Switzerland. Other countries have expressed intent to come in before the fund's deadline for investment at the end of June, by which time total committed funds are expected to exceed $120 million. “We are excited that with the active contributions by the four member countries so far, the fund can now become operational,” says WooChong Um, the Director in charge of clean energy programs within ADB's Regional and Sustainable Development Department. ADB will act as trustee for the fund, which will provide upfront payments for up to half of Certified Emission Reductions that are expected to be generated later by a given project. A credit marketing facility within the Carbon Market Initiative will help sponsors in marketing the additional carbon credits generated by the projects. The Carbon Market Initiative also includes a technical support facility to provide capacity building, due diligence, documentation, and implementation support for clean energy projects. “The Initiative will ensure a continuous stream of new clean energy projects in ADB's developing member countries that may be considered for ADB project financing,” adds Mr. Um. The overall value of the global carbon market was estimated at more than $10 billion in 2005, with the value of carbon market transactions reaching $27 billion in 2006. The carbon market is expected to continue to grow significantly. About ADB | 
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